Are solar panels worth it in 2026?
With the federal tax credit gone, is solar still worth it? Often yes — if your electricity rate is high and your roof gets sun. The honest answer.
The honest 2026 answer is: it depends on your state, your roof, and your rate — and it depends more now than it did a year ago. The 30% federal tax credit that propped up marginal solar deals expired at the end of 2025. That didn’t kill solar; it just removed the cushion. Where electricity is expensive and sun is decent, the math still works. Where power is cheap and net metering is stingy, it’s a closer call.
The fastest way to know your answer is to run your bill:
Is solar worth it for you?
Three inputs. Real local rates. An honest 2026 estimate.
Fine-tune (orientation, offset, financing)
Enter your bill to see your estimate.
- System size
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- Est. net cost
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- Annual savings
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- 25-yr savings
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Loan payment: —
Your state’s rules & the 2026 credit
Net metering: Select your state.
Incentives: Select your state.
The 30% federal residential solar tax credit (IRC §25D) expired on December 31, 2025. Homeowners who buy a system in 2026 do not receive a federal tax credit. Leasing or a PPA (third-party ownership) may still pass through some federal benefit via the commercial credit — always verify current federal and state incentives before signing.
Estimated annual production: —; gross cost —; panel count —.
Estimates only — not financial advice, and no federal credit applies to 2026 purchases. Your real numbers depend on roof, usage, utility, equipment, and quotes — verify and get itemized bids.
What makes solar “worth it”
Four factors decide it, roughly in order of impact:
- Your electricity rate. A 31¢/kWh rate in California offsets far more per panel than a 12.5¢ rate in North Carolina.
- Net metering quality. Full retail net metering is gold; avoided-cost “net billing” (like California’s NEM 3.0) cuts export value and often pushes you toward adding a battery.
- Sun and roof. South-facing and unshaded is best; orientation and shade can swing output 20–40%.
- Local incentives. State tax credits (AZ, NY, MA), production incentives (NJ, MA), and exemptions can meaningfully shorten payback.
Where it’s worth it right now
For a $165/month bill, here’s how the launch states stack up on estimated payback in 2026. Notice that high-rate states beat sunnier, cheaper-power states — rate matters more than sun:
| State | ¢/kWh | Sun hrs/day | $/W | Est. system | Est. net cost | Est. payback |
|---|---|---|---|---|---|---|
| California | 31.6 | 5.5 | $2.95 | 3.5 kW | $10,359 | 5.8 years |
| Texas | 15.3 | 5.3 | $2.60 | 7.5 kW | $19,567 | 11 years |
| Florida | 15.4 | 5.3 | $2.50 | 7.5 kW | $18,693 | 10.5 years |
| Arizona | 15.2 | 6.5 | $2.35 | 6.2 kW | $13,516 | 7.6 years |
| North Carolina | 12.5 | 4.8 | $2.60 | 10.2 kW | $26,445 | 14.8 years |
| New Jersey | 17.8 | 4.3 | $2.95 | 8 kW | $23,521 | 13.2 years |
The 25-year view
Payback is the headline, but it isn’t the whole story. A system that pays back in 12 years still runs for another 13+ years of near-free power, and utility rates have climbed roughly 3–4% a year. Over 25 years, even a “meh” payback often turns into five figures of net savings. That’s why we show 25-year savings alongside payback — a slow payback with big lifetime savings can still be worth it if you’re staying put.
When to wait
Hold off if you’re moving soon, your roof needs replacing first, your usage is tiny, or your utility offers poor export rates and you can’t add a battery. None of that is permanent — re-run the numbers when your situation changes.
Frequently asked questions
Are solar panels still worth it after the federal credit ended?
For many high-rate states, yes. Losing the 30% credit lengthens payback by roughly 3–5 years, but homeowners in places like California, Massachusetts, and New York still come out ahead over a 25-year system life because their electricity is expensive and keeps rising. In cheap-power states, the case is weaker and depends heavily on local incentives.
What payback period counts as “worth it”?
A common rule of thumb: under ~10 years is excellent, 10–15 years is reasonable for a 25+ year system, and beyond ~18 years the case gets shaky unless you highly value energy independence or expect steep rate hikes.
When is solar NOT worth it?
If you have a heavily shaded or north-facing roof, very low electricity usage, cheap power with poor net metering, or you plan to move within a few years, solar may not pay off — run your specific numbers first.
Does solar add home value?
Studies have generally found owned (not leased) solar adds to resale value, though the premium varies by market. A leased system can complicate a sale because the buyer must assume the contract.